Demise of the Cheque

[Eric Mc]

Although there is a thread on the Finance Forum, I thought this topic might deserve a bigger audience.

The banks are meeting today and may decide to phase out the use of cheques within a few years.

Personally, I am not in favour of this because, even though the use of cheques has declined, it is still the favoured type of transactions for certain types of payments -

interpersonal
payments to charities
gifts
etc.

I am also concerned that the alternative methods of payment using a bank expect the payee to give the payer their bank details. The good point about a cheque is that the payee does not have to give any of their bank details to the person that is paying them.

[Einion Yrth]

Eric Mc said:

The good point about a cheque is that the payee does not have to give any of their bank details to the person that is paying them.

Surely they're all on the cheque Eric?

[Pothole]

no security difference between cheque and switch AFAICS

[CHIEF]

I hope not we still recieve our wages payment by cheque.

[Lord Pikey]

I had an argument in HSBC yesturday about chequebooks. I was withdrawing a largish sum of money to fund a new car.

I had taken my passport, driving licence and the bank card with me but HSBC insisted that i should of brought my chequebook. My reply was that its in a drawer somewhere and has stayed there for the last 5 years.

They couldnt give me a reason why i MUST have my chequebook on me? In the end they gave me some bull about asking the manager for special circumstances and handed over my money

Do you lot know why they insisted i produce my chequebook?

[speedchick]

I still use cheques, well I get my other half to get his cheque book out for me, a lot of the craft fairs that I book need paying in advance and most people, Council included, will only accept cheques.

Plus I accept cheques as payment when doing the fairs, as some people don't have a lot of cash on them, and I can't justify the fees for a card machine for the odd one off payment.

[fatboy b]

Einion Yrth said:

Eric Mc said:

The good point about a cheque is that the payee does not have to give any of their bank details to the person that is paying them.

Surely they're all on the cheque Eric?

I think you need to rethink that statement.

Edited by fatboy b on Wednesday 16th December 09:26

[fatboy b]

I make sure I pay my company VAT with cheques, just to slow things a little. Though I see that goes out the window sometime next year.

[Eric Mc]

When YOU pay someone else by cheque, YOU are showing someone else some of your bank details.

When YOU pay someone by BACS, you need to ask THEM for THEIR bank details.

It's a reverse situation.

I am not against electronic payments. I do use them from time to time. BUT I would like the cheque option to remain.

Edited by Eric Mc on Wednesday 16th December 09:30

[touching cloth]

fatboy b said:

I make sure I pay my company VAT with cheques, just to slow things a little. Though I see that goes out the window sometime next year.

if paying online you already get 7 days more than if paying by cheque.

[Einion Yrth]

Eric Mc said:

When YOU pay someone else by cheque, YOU are showing someone else some of your bank details.

When YOU pay someone by BACS, you need to ask THEM for THEIR bank details.

It's a reverse situation.

I am not against electronic payments. I do use them from time to time. BUT I would like the cheque option to remain.

Edited by Eric Mc on Wednesday 16th December 09:30

Indeed Eric and fatboyb - I am an idiot and did not think through what I was writing.

[Eric Mc]

touching cloth said:

fatboy b said:

I make sure I pay my company VAT with cheques, just to slow things a little. Though I see that goes out the window sometime next year.

if paying online you already get 7 days more than if paying by cheque.

In certain circumstances, electronic patyment is the best option,. As i said, I am not against electronic payment in principle.

However, in other circumstances, a cheque is still sometimes the best and easiest way to pay.

[Dr_Gonzo]

We pay all out supplier accounts by cheque as this is the far eaiest option. I can write the cheque when ever I want and post all the payments at month end so I know when they'll all clear. As we need to send the copy statement to the suppliers anyway sending cheque with it also help keep all the payments together.

[rocksteadyeddie]

Compare and contrast to the USA where even major corporations still use cheques for almost everything. Interesting that in an otherwise financially advanced country they still print, sign and send bits of paper round the country.

Edited by rocksteadyeddie on Wednesday 16th December 19:08

[groak]

What will I send in the Xmas card to my two nieces? An electronic transfer statement?

[sanguinary]

I can see why the cheque isn't used as much by individuals since card payments became much easier to administer. Having said that I reckon most small to medium businesses still use cheques to pay most of their suppliers. I know I do and most of my business customers do too.

Our Ltd company couldn't get a switch type card when we set up (since the bank's switch card had a cheque guarantee part on it too), so had to rely on using cheques or cash. I can't see this changing in the near future or even in ten years or so when the banks expect to phase cheques out.

The banks also say they are too expensive to process. I get charged by the transaction each month by the bank so this must mean they have their pricing structure wrong!

Edited by sanguinary on Wednesday 16th December 11:00

Edited by sanguinary on Wednesday 16th December 11:01

[Ayahuasca]

fatboy b said:

I make sure I pay my company VAT with cheques, just to slow things a little. Though I see that goes out the window sometime next year.

If you want to slow things even more, run a magnet over the cheque before sending it in.

Cheques are read by machines that pick up the magnetised print. If you have fked it up with a magnet, it will be rejected and have to be processed manually.

Banks hate it when you do this.

[Parrot of Doom]

Cheque:

Write cheque, pop in envelope, post. Done.

Electronic payment by phone:

Phone up, press loads of numbers, listen to "all our operators are busy" and crap music, finally get through, repeat all the numbers, then give two letters from a password, then tell them a memorable 'thing'. Then tell them the amount, then tell them the account and sort code, then listen to them say it all back, then have to put up with them trying to sell some bullst service.

And then wait four fkign working days for an electronic payment that should take 4 minutes, to process.


Give me cheques any day.

[dilbert]

I would have thought it makes more sense to abandon cash than cheques?

[eddie1980]

dilbert said:

I would have thought it makes more sense to abandon cash than cheques?

Erm except for parking tickets, newspapers, shopping trolleys, vending machines etc.